Question
Given: • Net income: ₹30 lakh •
Depreciation: ₹10 lakh • Increase in inventory: ₹5 lakh • Decrease in payables: ₹4 lakh • Increase in receivables: ₹6 lakh Compute cash flow from operating activities using the Indirect Method.Solution
CFO = Net income + Depreciation – Inv – Rec - Payables = ₹25L
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